Case Study
Individual Case Write Up Read the case “ABB: Strategic Rise, Decline, and Renewal” (page 312). Answer the following questions: Assignment questions: 1. CEO Percy Barnevik‟s ideals in building ABB into a global corporate presence were wellfounded. Identify these ideals and discuss the factors which caused key areas to go awry and affect the performance of the business. 2. Identify and discuss the key strategic initiatives implemented by the various CEO‟s appointed after Barnevik‟s tenure to take the company out of the „crumbling mess‟ within which it found itself in 2001. In your opinion which CEO performed the better and why? 3. Percy Barnevik laid great store in the use of a matrix structure. Discuss the pros and cons of matrix structures and compare and contrast with those of so-called product/market structures and divisional structures. What particular structure has ABB now developed and why did it take five major restructurings from October 1997 to January 2006 to achieve it? 4. Assess ABB‟s current corporate culture. Do you think that it has changed since Percy Barnevik‟s time?
5. ABB‟s current growth strategy is to seek small „bolt-on‟ acquisitions to existing product areas rather than via major acquisitions that could take the company into new areas e.g. aerospace. Comment on these strategic options. Deadline: This assignment is due on by 23.00 on the due date – see schedule! I do not accept late assignments for any reason whatsoever including sickness! Period! Please follow the instructions for submitting the assignments online. Page Limits: The total number of pages for the assignment is five-pages, double-spaced, typed! I will not read anything that you want to say on the sixth page. Therefore, please stick to this page limit. This does not include any appendixes or charts you want to attach. Please do not use the appendix as a way to circumvent the five-pages limit. General Advice: In analyzing any case, please do not re-narrate the case for me. I
5. ABB‟s current growth strategy is to seek small „bolt-on‟ acquisitions to existing product areas rather than via major acquisitions that could take the company into new areas e.g. aerospace. Comment on these strategic options. Deadline: This assignment is due on by 23.00 on the due date – see schedule! I do not accept late assignments for any reason whatsoever including sickness! Period! Please follow the instructions for submitting the assignments online. Page Limits: The total number of pages for the assignment is five-pages, double-spaced, typed! I will not read anything that you want to say on the sixth page. Therefore, please stick to this page limit. This does not include any appendixes or charts you want to attach. Please do not use the appendix as a way to circumvent the five-pages limit. General Advice: In analyzing any case, please do not re-narrate the case for me. I